MDA’s revenue was expected to decline this year because of the end of its most recent Radarsat mission. Radarsat makes a lot of money for MDA.
Maxar said the businesses it is selling are on track for US$370-million in annual revenue and US$85-million in adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) in 2019. The sale “furthers execution on the company’s near-term priority of reducing debt and leverage,” Maxar CEO Daniel Jablonsky said in a release. News of the deal was greeted warmly by investors, who bid up Maxar shares nearly 15 per cent in Monday’s trading.
The involvement of Mr. Balsillie points to potential opportunities for an MDA division that provides components and ground station capabilities for communications satellites operating in low-Earth orbit (LEO) – between 500 and 2,000 kilometres above the Earth’s surface.